The times. (Owosso, Mich.) 1882-1897, 1887-12-09
THE TIM Els,
Owosso. Dec. 9, 1887.
ITEM PAGES
Circulation Next Week,
S,631.
THE ANNUAL MESSAGE.
PRESIDENT CLEvELAND'S COMMUNE
CATION SENT TO CONGRESS.

land sent his annual message to congress Tues
day. 1t treats solely of the treasury surplus and
tariff question, and Is as follows:
To THE CONGRESS OF THE UNITED STATES:
You are confronted at the Threshold OF your
legislative duties with @ condition of the ma
tional finances which imperatively demands
immediate and careful consideration. Tho
amount Of money annually received through the
operation of present laws, from the industries
and necessities of the people, largely exceeds
the sum necessary to meet the expenses OF the
Of our institutions guarantees to every citizen
the full endowment of the fruits OF his industry
and enterprises with only such deduction as
may be his share toward the careful and eco
protects him. 1t Is plain that the exaction OF
more than this is indefensible and culpable
flicted upon those who bear the burden OF ma
tional taxation, like other wrongs, multplies u
brood of evil consequences. The public treas
ury, which should only exist as a conduit con-
veying the peoples tribute to its legitimate OBJ
jects OF expenditures, becomes boarding place
Tor money needlessly withdrawn from trade and
orgies, usurping our country's development, pre-
venting investment in productive enterprises,
threatening financial disturbance, and inviting
schemes OF public plumber
This condition of our treasury Is not altogether
new and 1t has more than once OF late been sub
mtted to the peoples representatives in the con-
the situation still continues with aggravated in
cidents, more than ever presaging financial con-
WILSON'S and widespread disaster. 1t will not
do to neglect this situation because its dangers
are not now palpably imminent and apparent.
They exist none the less certainly and the unfor-
seen and unexpected occasion may come when
suddenly they will be precipitated upon u.s.
On the 30th day OF June. 1885, the excess Of
revenue over public expenditure after complying
with the annual requirement OF the sinking-fund
act. was SIT $50, 1854 during the year ended
June 10, 1885, such excess amounted to $40 405,-
6s5.20 and during the year ended June 80. 1887,
it reached the sum of $50, 567, $3.50 The annual
contributions to the sinking-fund during the
three years above specified, amounting in the
aggregate to Sl39, 05S, a. and deductipg from
the surplus as stated, were made by calling in for
that purpose outstanding 2 per cent; bonds r,ds
to June 80, 1881, the surplus revenue had grown
large by repeated accumulatons, and it was
needed by the people, would 80 affect the bust
ness of the country that the sum of
1854 100 of such surplus was applied to the
) per cent. bonds still Outstanding, und which
were then payable at the option OF the govern
ment The precarious condition OF financial at
fairs among the people still needed relief Imme-
diately after the SOth day Of June. 1887 tho re-
inainder OF the per cent. bonds thus outstand-
ing amounting, with principal and interest, to
piled to the sinking fund contribution for the
current fiscal year. Notwithstanding these oper-
atoms of the treasury department representa-
tons of distress in business circles not only con-
tinued but increased, and absolute peril seemed
at hand. in these Giro umstances the contribu-
ton to the sinking fund for tho current fiscal
year was at once completed by the expenditure
Of s27 1884 ,2s3 55 in the purchase of government
bonds not yet due bearing AZ per cent interest,
the premium paid thereon averaging about "a
latter. In addition to this the interest accruing
during the current year upon the outstanding
bonded Indebtedness OF the government was to
some extent anticipated and banks selected az
repositories of public money were permitted to
somew hat increase their deposits.
While tho expedients thus employed. to re-
lease to the people the money lying in the treas
ury, served to avert Immediate danger, our sur
plus revenues have continued to accumulate, the
excess for the present year amounting on the LIST
day of December to S55 25S, ST. 10 and estimated to
reach the sum OF Sl13 600 900 ON tho 30th Of June
next, at which date 1t is expected that this sum,
added to prior sccumulations, will swell the sur
plus In the treasury to $40, 100000.
There seems to be no assurance that with such
q withdrawal from use OF the peoples circulat-
ing medium our business community may not in
the near future be subjected to the Same distress
which was quite lately produced from the same
cause. And while the functions OF our national
treasury should he few and simple, and while
the best condition would be reached. I believe by
its entire disconnecton with the private business
interests, yet when, by perversion OF its pur-
poses, 1t idly holds money uselessly substracted
from the channels OF trade, there seems to be
sons for the claims that legitimate means should
DO devised by the government to restore in an
emergency, without waste or extravaganza such
money TO its place among the people.
II such an emergency arises there now exists
no clear and undoubted executive power of re-
lief. Heretofore tho redemption Of the 3pper
cents only, WHICH were payable at the option OF
disbursement of the excess OF our revenues but
those bonds have all been retired, and there are
no bonds outstanding the payment OF which We
have the right to insist upon: The contribution
10 the sinking fund, which furnishes the occa-
sion for expenditures in the purchase of bonds,
has been already made for the current year. 30
In the present state Of legislation the only
pretense OF any existing executive power to re-
store at this time. any part OF our surplus reye-
in the supposition that the secretary OF the
treasury may enter the market and purchase the
bonds OF the government not yet due. at rate
of premium to be agreed upon.
The only provision Of law from which such q
power could be derived Is found In an APP
preparation bill passed a number OF years ago,
and IL is subject to the supposition that IL was
intended as temporary and limited in It's APP
plication instead Of comforting a continuing dis
erection and authority. No condition ought to
exist which would justify the grant OF power to
a single official upon his judgment Of its neces-
sity, to withhold from or release to business OF
the people In ar unusual manner money held In
the treasury, and thus affect, at his will, the
financial situation OF the country; and IL IL is
deemed wise 10 lodge In the secretary Of the
treasury the authority In the present iuncture to
provided as far rs possible, with such checks
and limitations as will define his official right
and discretion, and at the same time relieve him
from undue responsibility,
In considering tho question OF purchasing
bonds as q means of restoring to circulation the
surplus money accommodating In the treasury, 1t
should be borne In mind that premiums must
of course be paid upon such purchase that there
may be large part OF these bonds held as in
vestments which can not be purchased mt any
price and that combinations among holders who
are willing to sell, may unreasonably enhance
the cost OF such bonds to the government.
It has been suggested that the present bonded
debt might be refunded at less rate Of interest
and the difference between the old and new Sc
curities paid in cash, thus finding use for the
surplus In the treasury. The success OF this
plan, 10 is apparent, must be founded upon the
volition OF the holders Of the present bonds: and
10 10 not entirely certain that the inducement
which must be offered them would reduce the
principal of the debt by actual payment, instead
Of extending IL. The proposition TO deposit the
money held by the 'overnmont In banks
throughout the country, for use by the people,
IL, 10 seems TO me, an exceedingly objectionable
principle az reaching too close relationship be-
tween the operations OF the government to the
business OF the country, and the extensive COM
mingling OF their money, thus fostering an I'M
natural reliance In private business upon public
funds. II this scheme should be adopted It
should be done a. temporary expedient 10 meet
an urgent pegssIty. Legislative and executive
effort should generally be In the opposite direc-
ton and should have tendency TO divorce. ss
much and as fast can be done tho treasury
department from private enterprises. OF cours
itis not expected that unnecessary and extrava-